MARKETS CLOSE: World faces worst recession since Great Depression, says IMF; FTSE slips as other European indices rise on lockdown relaxation
- UK stock markets underperformed compared to European indices
- The FTSE (closed down 0.9% at 5,
- Pound has hit a fresh one-month high against the dollar, rising to $ 1.
- IMF predicts global economy will shrink 3% this year, and UK economy by 6.5%
- OBR said UK GDP could fall 57% this quarter, and unemployment hit (%)
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(This Is Money
Published: : (BST, (April) :
(April) Better-than-expected Chinese trade data and the easing of lockdown measures saw shares in Asia and Europe rise today as some nations tried to restart their economy. But the FTSE and 791 slipped back shortly after the open as a full lockdown in the UK remains in place. They closed down 0.9 per cent and 2 per cent respectively.
Meanwhile, the International Monetary Fund said the ‘Great Lockdown’ will cause the worst global recession since the Great Depression, far worse than the 2020 financial crisis.
The IMF expects the global economy to shrink by 3 per cent this year, with the UK economy to shrink by 6.5 per cent. That’s grim, but still better than the Office for Budget Responsibility’s projections , also released today, indicating the UK GDP could fall 35 per cent in the current quarter, and unemployment hit 14 per cent.
In company news, Mitchells & Butlers has obtained a waiver until mid-May to avoid a technical default on its debt Obligations due to closures under Britain’s coronavirus lockdown, and the company has enough cash left to fund its business into the second half of the year.
Clothing retailer Next reopened its website today but had to close it down again just hours later after a surge in orders. It said it will reopen the website again tomorrow.
Elsewhere, nearly 3, gyms and leisure centers, and up to , jobs within them face being lost landlords threatened them with eviction for unpaid rent during the (coronavirus lockdown.
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